Orange California Shopping Center Lease Agreement — Percentage Rent Option In Orange, California, shopping centers play a crucial role in the city's retail landscape. To ensure a fair and profitable business relationship between landlords and tenants, the Orange California Shopping Center Lease Agreement incorporates various options, including the percentage rent option. This percentage rent option allows both parties to benefit from the success of the tenant's business by sharing a portion of the revenue generated. Different types of Orange California Shopping Center Lease Agreement — percentage rent options include: 1. Gross Revenue Percentage: In this type of lease agreement, the tenant pays a percentage of their gross revenue as rent. This option ensures that the rental amount reflects the actual business performance of the tenant, making it a fair arrangement. 2. Minimum Base Rent with Percentage over Breakpoint: This type of agreement sets a minimum base rent that the tenant must pay, regardless of their revenue. However, once the tenant's revenue exceeds a specified breakpoint, a percentage of the additional revenue is also owed as rent. This option guarantees a minimum income for the landlord while still allowing them to benefit from the tenant's success. 3. Tiered Percentage Rent: The tiered percentage rent option includes multiple breakpoints that determine the rental percentage. For example, for revenue below a certain threshold, the tenant may pay a lower percentage, while for revenue above that threshold, the percentage increases. This type of agreement offers flexibility based on the tenant's overall performance. 4. Percentage Rent with Cap: This option fixes a maximum percentage that the tenant has to pay, regardless of their revenue. It ensures that the tenant shares the success but provides them with a level of protection, preventing excessively high rental costs in times of exceptional performance. These different types of Orange California Shopping Center Lease Agreement — percentage rent options aim to create a balanced and mutually beneficial partnership between landlords and tenants. By incorporating revenue-based rent, landlords can encourage tenants' business growth while safeguarding their own financial interests. Tenants, on the other hand, have the potential to prosper while paying rent proportional to their success.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.